Report: Xbox Entertainment Studios Is In Talks With Warner Bros For Possible Merger

As part of the massive layoffs Microsoft announced last month, Microsoft decided to shut down the recently formed Xbox Entertainment Studios which was responsible for creating original programming for Xbox platform. CBS entertainment president Nancy Tellem was hired by Microsoft back in 2012 to lead these efforts and their recent production was “Every Street United” which was premiered on Xbox One during the world cup. There are about 12 projects currently in various stages of production. Hollywood reported today that XES is in discussions with Warner Bros. about possibly becoming a stand-alone entity based at the studio. If it happens, XES may become part of Machinima, the video game-centric YouTube network in which Warner Bros. has already invested it.

A Warner Bros. spokeswoman said that the studio is “constantly having preliminary discussions regarding business opportunities with numerous companies at any given time. A conversation is just that — a conversation.”

Hollywood Reporter says that even without Warner Bros. deal, XES may find a new home as they are in preliminary discussions with other companies as well.